Kotak Institutional Equities in a fresh note expected a steadier quarter for Indian IT services in Q2FY26, with sequential growth of 0.2–6 per cent across companies. Rupee depreciation, combined with cost measures, is likely to support margins despite pricing pressures. Deal wins are expected to be steady to strong, though highly competitive. Infosys, Coforge, and LTIMindtree are likely to post strong results, while TCS and Wipro may trail. Kotak has incorporated revised dollar-rupee rates and H-1B risks, taking a more conservative stance on FY2027 recovery, resulting in 0–3 per cent cuts to FY2026–28 EPS and 2–9 per cent cuts to fair values. The brokerage sees the sector’s risk-reward profile turning attractive, with top picks being Infosys, TechM, Coforge, and Hexaware. Advertisement

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